OVERVIEW - Q4 2020 performance against prior period Q4 2019

• Safety performance – there were no work-related fatalities in Q4 2020 at own-managed operations.
• Covid-19 protocols are embedded, and own-managed operations reached 100% of normal production capacity by the end of the quarter.
• PGM production at own-managed mines decreased by 8% to 617,800 ounces due to the closure of mined-out infrastructure at Amandelbult and community-related disruptions at Mogalakwena. Unki and Mototolo delivered strong production.
• Joint operations PGM production (mined and purchase of concentrate) decreased by 14% to 198,000 ounces. This was largely due to self-imposed safety stoppages at Modikwa following the fatal incidents, as well as unprotected strike action at both Kroondal and Modikwa.
• Refined PGM production, excluding tolling, decreased by 49% to 673,100 ounces. The lower output was due to the Anglo Converter Plant (ACP) unit B closure in the quarter.
• Completed repair of ACP Phase A – ahead of schedule and safely recommissioned on 24 November 2020.
• Total PGM sales volumes decreased 24% to 1,125,100 ounces largely due to lower refined production. The decline was offset by a drawdown of refined inventory and trading activities to mitigate the impact to customers.

Natascha Viljoen, CEO of Anglo American Platinum, said:

“We had no work-related fatalities at our own-managed operations during the quarter, however we did see a regression in our safety performance as the uncertainty relating to Covid-19 impacted on stability at the operations. Mitigation plans throughout the quarter significantly improved our performance by year-end, but the average for the quarter was higher than Q4 2019. Tragically, we had a work-related fatality at our independently managed joint operation, Modikwa. We extend our deepest condolences to the family and friends of Mr. Johannes Mahlalela. The safety and health of our employees is our first priority and our focus remains on the elimination of fatalities, adherence to Covid-19 measures, including extensive screening and testing protocols, at our operations.

Production performance was strong considering the ongoing implications of Covid-19. We reached 100% normal capacity by the end of the quarter, due to protocols being embedded and work routines put in place. Whilst refined production was lower, we successfully and safely completed the rebuild of the ACP Phase A unit ahead of schedule and recommissioned the plant on 24 November 2020. We were able to reduce the impact of lower refined production on sales by drawing down on refined inventory as well as utilising trading activities to mitigate the impact to customers. As part of our Covid-19 protocols, we have put additional measures in place to test and screen employees returning from hotspot areas after the December break. The second wave of Covid-19 has led to an increase in employee infection rates, however we are past the peak and are starting to see a reduction in active cases. As a result, we are currently operating at ~90% of normal production capacity.”

REVIEW OF THE QUARTER

SAFETY

Anglo American Platinum reported zero loss of life during the quarter at its own-managed operations. Tragically, our independently-managed joint operation, Modikwa, had a loss of life. Mr Johannes Mahlalela, a team leader, sustained an injury to his right arm on 7 October and was stable post an operation. Sadly, he collapsed in hospital on 11 October 2020 and subsequently passed away. We once again extend our deepest condolences to his family, friends and colleagues, and are steadfast in eliminating fatalities.

The Total Recordable Case Frequency Rate (“TRCFR”) per million hours at managed operations for the quarter regressed to 2.25 per million hours, compared to 1.79 per million hours in Q4 2019. Measures put in place following the fatal incident in September resulted in a steady decrease in TRCFR in the quarter to 1.77 in December 2020. The positive trend was due to the implementation of mitigation plans, which included greater risk management, an increase in management time at the operations and safety stoppages to strengthen our elimination of fatalities work and address the increase in TRCFR. In addition, a large focus was placed on ensuring mental wellness. The uncertainty related to direct Covid-19 infections and the growing infection rate has led to mental strain on employees and impacted stability at the operations, which is evident in the deterioration of the TRCFR. Human factors and mental health are a key focus area given their impact on behaviour at work.

PGM PRODUCTION

Total PGM production of 1,076,100 ounces decreased 7% against Q4 2019, with safety controls and restrictions remaining in place to protect employees from Covid-19. Platinum and palladium production was down 6% to 497,800 ounces and 338,400 ounces respectively.

PGM production from own managed mines

PGM production at Mogalakwena decreased by 3% to 306,700 ounces, as continued strong operational performance was impacted by community unrest that resulted in fewer milling shifts as employees were not able to get to work, as well as minor operational issues at the North concentrator plant. These issues both led to lower milled volumes. Platinum production decreased by 5% to 129,500 ounces and palladium production decreased by 3%, to 141,700 ounces.

Amandelbult PGM production was down 22% to 185,500 ounces as the Tumela Upper section and surface production come to the end of their life of mine. These sections contributed 11,600 PGM ounces and 12,400 PGM ounces respectively in Q4 2019, with the balance largely due to self-imposed safety stoppages following the fatality in Q3 2020. Platinum production decreased by 22% to 93,400 ounces and palladium production decreased by 21%, to 44,000 ounces.

Mototolo PGM production increased by 4% to 69,800 ounces due to higher throughput resulting from improved concentrator runtime and plant stability, as well as an improvement in the 4E built-up head grade as the prior period had geological features that negatively impacted grade. Platinum production increased by 4% to 32,100 ounces and palladium increased by 6% to 20,200 ounces.

Unki PGM production increased by 7% to 55,800 ounces, largely due to higher 4E built-up head grade and higher throughput. Platinum production increased by 6% to 24,600 ounces and palladium production increased by 10% to 22,000 ounces.

PGM production from joint operations (50% own-mined production and 50% purchase of concentrate)

PGM production from joint operations decreased by 14% to 198,000 ounces. Platinum production decreased by 13% to 90,200 ounces and palladium production decreased by 17% to 56,200 ounces.

Modikwa PGM production decreased by 31% to 49,800 ounces, due to the safety stoppages following the tragic work-related fatalities in September and October, as well as an unprotected employee strike in November due to the misinterpretation of housing-related benefits which were overpaid in the prior quarter. Platinum production decreased by 30% to 19,600 ounces and palladium decreased by 31% to 18,600 ounces.

Kroondal PGM production decreased by 7% to 148,200 ounces also as a result of an unprotected strike by contractors installing underground support in November due to salary-related concerns. Platinum decreased by 6% to 70,700 ounces and palladium production decreased by 8% to 37,800 ounces.

REFINED PGM PRODUCTION

Refined PGM production from own material (excluding toll-treated material) decreased by 49% to 673,100 ounces, as the ACP Phase B unit was closed earlier than planned on 5 November 2020 to ensure an ongoing safe operating environment, protect employees and protect the integrity of the plant. The rebuild of the ACP Phase A unit was successfully completed ahead of schedule on 24 November 2020, with first converter matte dispatched to the Base Metal Refinery for further processing on 7 December 2020. The ACP Phase A unit continues to perform well and in line with normal operating expectations. The ACP Phase B unit is now undergoing its expected full rebuild that is scheduled to be completed in the second half of 2021 at an estimated capital cost of R550-R600 million.

The ACP stoppages during 2020 have resulted in an increase in work-in-progress inventory of ~1.0 million PGM ounces, which is expected to be released over the next 24 months.

Refined platinum production decreased by 53% to 296,400 ounces and refined palladium production decreased by 48% to 206,800 ounces.

Toll refined 4E production decreased 16% to 146,500 ounces due to lower inputs received and the impact of the ACP interruptions.

PGM SALES VOLUMES

PGM sales volume from production (excluding trading activities) decreased by 47% to 754,300 ounces, driven by lower refined production, but partially offset by a drawdown of refined inventory. Platinum sales volume decreased by 53% to 311,200 ounces and palladium sales volumes decreased by 41% to 258,200 ounces.

PGM sales volume from trading increased 583% to 370,800 (platinum trading volumes increased to 176,300 ounces and palladium trading volumes increased to 172,800 ounces), to support customers following a reduction in refined metal production.

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